One state has already seen a bill that would outlaw online sweepstakes casinos pre-filed ahead of the start of the 2027 legislative session.
That state?
Pennsylvania.
There, House Bill 2801 was pre-filed in late September by Rep. Russ Diamond, Rep. Jacob Banta, Rep. Bradley Roae, Rep. Dan Moul, and Rep. Jeanne McNeill. It has already been referred to the House Gaming Oversight Committee — for which Diamond is the co-chair — in preparation for the start of Pennsylvania’s 2027 legislative session, which begins on Jan. 5.
$500,000 fine, more authority to regulator and Attorney General
Overall, HB2801 overhauls Pennsylvania’s gaming laws, revising regulations, licensing fees, taxes, and revenue distributions for casinos, fantasy contests, online gaming, sports betting, and video gaming terminals. It also modifies regulatory oversight, adjusts funding allocations, and updates enforcement, self-exclusion, and responsible gambling provisions across the state’s gaming industry — and, yes, outlaws online sweepstakes games.
Here is the specific language affecting sweeps casinos:
- It shall be unlawful for a person or entity to operate, conduct or promote online sweepstakes games within this Commonwealth.
- It shall be unlawful for a person or entity to take action to support or assist in the administration, operation, conduct or promotion of online sweepstakes games within this Commonwealth.
HB2801 sets the penalty for any of these offenses at up to $500,000. It also gives authority to both the Pennsylvania Gaming Control Board and the Attorney General to conduct investigations and hearings and issue cease-and-desists to any offending sweeps operators.
Targeting sweeps gaming while protecting social gaming
Here is how the bill defines an online sweepstakes game:
A game, contest or promotion that is available on the Internet or accessible on a mobile phone, computer terminal or similar access device that:
(i) utilizes a dual-currency system of payment allowing the player to exchange the currency for a prize, award, cash or cash equivalent or a chance to win a prize, award, cash or cash equivalent; and (ii) simulates casino-style gaming.
(2) The term includes a slot machine, interactive game, table game, including blackjack, roulette, craps or poker, or lottery games, including draw games, instant win games, keno, bingo or sports wagering.
(3) The term does not include a game which does not award cash prizes or cash equivalents.
Like most of the sweeps ban bills of 2025 and 2026 across the country before Pennsylvania’s legislation, HB2801 targets the dual-currency model that has been the focus of this two-plus-year period of scrutiny on the sweeps industry.
That model contains two currencies: Gold Coins and Sweeps Coins. Gold Coins can be purchased and cannot be redeemed for money. Sweeps Coins, meanwhile, cannot be purchased but can be redeemed for money — and they are the source of tension between sweeps advocates and those trying to get rid of sweeps sites.
The last part of the definition — The term does not include a game which does not award cash prizes or cash equivalents. — is protecting social casino gaming. Social casino gaming is Gold Coin gameplay, where players can purchase currency to play casino-style games but they can’t redeem any money from their game winnings.
Things brewing since early 2025
In April 2025, the House Gaming Oversight Committee held a hearing on online sweepstakes casinos. That hearing featured testimony from PGCB Chief Counsel Steve Cook and Chief
Enforcement Counsel Cyrus Pitre.
“Although not yet settled law by the Courts of this Commonwealth, it is my personal belief that these games use the charade of play-for-fun gaming and ‘no purchase necessary’ requirements to mask what is, in reality, online gambling,” Cook said at the time in a written testimony. “Unfortunately, the Pennsylvania Race Horse Development and Gaming Act’s specific language hinders the Pennsylvania Gaming Control Board from taking legal action against these sites.
“It's important to note that the Board, including its Bureau of Investigations and Enforcement and Office of Enforcement Counsel have limited jurisdiction. They can only investigate and act against entities that voluntarily submit to its oversight, and it lacks the authority to pursue legal action for criminal law violations.”
HB2801 would change that.
In his written testimony, Pitre revealed that the PGCB had up to that point issued 18 cease-and-desists to sweepstakes casino operators, and all companies promptly complied.
“However, the sheer volume of these sites creates a 'whack-a-mole' scenario-for every site we manage to shut down, countless others emerge or become operational each day,” he added. “These investigations require significant time and resources, and the companies in question are under no obligation to cooperate.”
If HB2801 passes, dual-currency gaming at sweeps casinos will become formally illegal — creating a mandatory obligation to cooperate.
Keep an eye on Virginia, too
While it hasn’t officially had legislation set for consideration, Virginia is a potential state to watch for a sweeps casino bill in 2027. But not a ban.
Three bills aimed at banning Sweeps Coin gameplay failed to pass in 2026. Two of them also would have legalized real-money online casinos, and both stalled in a conference committee.
The third bill, Senate Bill 579, was different, focused exclusively on banning dual-currency gaming. However, the Senate Courts of Justice Committee amended it to require a study of the industry instead, examining its legal and economic effects, how it differs from real-money gambling, and how online sweepstakes games should be defined.
In February, the committee voted 14-1 to carry the amended bill over to the 2027 session rather than reject it. That means SB579 remains alive, if the legislature wants to pick it up again.
For the sweeps industry, this is a potentially positive development. Still, a strong committee vote doesn't guarantee passage, and Virginia could still consider a ban, as well.